Ministry of Ports, Shipping and Waterways
SHIPBUILDING CLUSTERS IN TAMIL NADU
Posted On: 14 MAR 2026 9:41AM by PIB Delhi
The Government of Tamil Nadu proposes to establish a greenfield shipbuilding cluster in Thoothukudi district, Tamil Nadu. To establish this cluster, V.O. Chidambaranar Port (VOCPA) and State Industries Promotion Corporation of Tamil Nadu (SIPCOT) have formed a Special Purpose Vehicle (SPV) named National Shipbuilding & Heavy Industries Park Tamil Nadu Limited (NSHIPTN) and also signed an MoU deliberating responsibilities of each party.
The Government of Tamil Nadu has informed that they have examined the potential economic and employment impacts of shipbuilding and ship repair initiatives for coastal districts in Tamil Nadu, including districts Ramanathapuram. The establishment of this cluster is expected to enhance the shipbuilding industry capacity and capability attracting ancillary industries and boosting economic activity and enhancing supply-chain linkages in Tamil Nadu including neighbouring coastal districts such as Ramanathapuram district. There is a potential for generation of high direct and indirect employment on account of the high employment multiplier of 6.4 of the shipbuilding industry. The NSHIPTN initiative is expected to generate more than 55,000 direct and indirect employment opportunities across shipbuilding, ship repair, marine engineering, fabrication, logistics and port services. The development of such clusters is also expected to catalyse a strong ecosystem of ancillary industries including marine equipment manufacturing, steel fabrication, electrical systems, coatings and precision engineering. Beyond direct employment, these initiatives are likely to strengthen the blue economy by expanding maritime supply chains and creating economic multipliers across fisheries, logistics, Micro, Small, and Medium Enterprises (MSMEs) and service sectors and thereby, supporting regional economic development.
The Government of Tamil Nadu is actively working towards strengthening port-led industrialisation along the coastline and extending related infrastructure, skilling programmes, MSME participation and supply-chain linkages to coastal districts such as Ramanathapuram. The Tamil Nadu Shipbuilding Policy 2026 provides a range of incentives including equity support, production-linked incentives (PLI), and plug-and
play infrastructure aimed at promoting shipbuilding and ship repair ecosystems while enabling regional MSMEs to integrate into maritime supply chains.
Skill development and livelihood programmes are being promoted by the State Government through sector-specific training modules in areas such as ship repair, green vessel maintenance, marine engineering support services, fabrication, welding, electrical work, logistics and port operations. These initiatives leverage existing fisher community networks and maritime knowledge to support activities such as boat building and marine services.
District-specific interventions are undertaken by the State Government to strengthen infrastructure, industrialization and livelihood opportunities across southern coastal districts. These initiatives include improving port connectivity, promoting marine-based industries, strengthening fisheries infrastructure, supporting MSME clusters and expanding skill development programmes.
This information was given by the Union Minister of Ports, Shipping, and Waterways, Shri Sarbananda Sonowal, in a written reply to the Lok Sabha.
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